BA341 7th Edition Lecture 7 Outline of Last LectureI. IntroductionII. Capacity and Constraint Management and The Goal Outline of Current Lecture III. Process StrategyIV. Harley Davidson exampleV. Process FocusVI. Repetitive FocusVII. Product FocusVIII. Mass Customization Current LectureThere is need for a Process Strategy because it must support the Operations Strategy and organizational objectives.- A process strategy is an organization’s approach to transforming resources into goods and services- The object is to produce products that meets customer requirements within cost and other managerial constraintsAll of these are effected by process strategies:- Product/service features, e.g., innovative vs. functional- Product variety, volume, demand uncertainty- Cost and quality of produced goods or services- Production efficiency and flexibilityAn example is Harley Davidson - The leading U.S. motorcycle company- Emphasis on quality and lean manufacturing- Emphasis on product customization – high product variety- However, production volume is also highThis is Harley’s Process Flow DiagramThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Some basic process strategies:Virtually every good or service is made by using some variations of one of four process strategies:- Process focus- Repetitive focus- Product focus- Mass customizationProcess Focus- Supports a high degree of product flexibility and customization- Low product volumes- General purpose equipment and skilled personnel- High variable costs and low equipment utilization- Variable product flows planning and scheduling of resources is challengingRepetitive Focus- Characterized by modules with parts and assemblies made previously- Modules may be combined in different ways, resulting in many output options- Facilities often organized as assembly lines- Less product flexibility then process-focused facilities, but more efficient, while also allowing higher product volumesProduct Focus- Focus on one product or product family- High volume, but low product variety- Highly specialized equipment and generally less skilled labor- Typically high fixed costs, but low variable costs- Typical of continuous processes (with long production runs), e.g., glass, paper, potato chips, pharmaceuticals, chemicals, refineriesMass Customization- Aims to combine the efficiency of the product focus with the flexibility of the process focus- A response to customers’ increasingly unique demands- Making mass customization work-- Some examples are smooth FM Radio, Borders Book, Align Technology of Santa
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